When Will Altcoins Surge Again? These Two Signals Could Trigger the Next Breakout

The crypto market remains in a state of anticipation as traders watch for signs that the next altcoin rally is ready to begin. While some small rallies emerged in late July, the broader altseason still hasn’t arrived. Now, fresh analysis from crypto strategist PlanD points to two specific signals that could mark the true beginning of the next altcoin surge.

If you’re waiting for confirmation before re-entering altcoin markets, it may come down to Ethereum’s behavior at a key resistance level and a decisive shift in USDT dominance. These indicators, according to PlanD, could be the clearest triggers for capital rotation back into volatile altcoins.

Read Also: XRP and BNB Lead the Altcoin Momentum

Key Takeaways

• Ethereum must break and hold above $4,000 to ignite altcoin momentum.
• A drop in USDT dominance to 3.21% may signal a major rotation into risk assets.
• Bitcoin dominance rising beyond 64.6% could hurt altcoin prices short-term.
• PlanD suggests watching ETH, BTC.D, and USDT.D charts to time altseason entries.
• Bitcoin may still hit $160,000 in this cycle, but altcoins could lag until these signals flash.

Ethereum Breakout at $4,000 Could Lead the Charge

Ethereum remains a central pillar of any altseason. According to PlanD, ETH is nearing the top of a symmetrical triangle that has been forming for three years, with resistance at the $4,000 mark. A clear breakout and sustained price action above this level could act as a green light for other altcoins to follow.

Why does ETH matter so much? As the largest altcoin with a $424 billion market cap, its movements often dictate the broader trend for lower-cap altcoins. If Ethereum can break through and hold above this resistance, it may trigger widespread confidence and risk-on behavior across the market.

USDT Dominance Must Fall to Confirm Risk Rotation

The second signal to watch is the USDT Dominance (USDT.D) chart. PlanD’s analysis shows that USDT.D recently broke out of a bearish flag pattern and could retest levels near 4.71%. However, the real catalyst for altcoins lies in a deeper drop toward 3.21%, the projected target of the bearish flag.

Why is this level important? A fall to 3.21% would suggest that capital is rotating out of stablecoins and into more volatile assets like altcoins. This is often a sign of increased investor risk appetite — and a likely indicator that an altseason is imminent.

Bitcoin Dominance Poses a Risk to Altcoins

PlanD also analyzed the Bitcoin Dominance (BTC.D) chart, which shows the relative strength of Bitcoin compared to the rest of the crypto market. BTC.D has twice rebounded off support at 60.3%, forming a three-year rising wedge.

If BTC dominance rises toward the 64.6%–64.8% range, altcoins could suffer a temporary 10–20% drawdown. This would likely precede the actual altseason and could offer buying opportunities once BTC.D tops out.

Read Also: Has the Altcoin Season Started? Looking at the Altcoin Index

Bitcoin’s Role in the Bigger Picture

Although this analysis focuses on altcoins, it’s important to consider Bitcoin’s trajectory. PlanD maintains a bullish stance, targeting $160,000 in the current cycle. He outlines two potential paths:

1. Bitcoin rebounds from $113,000 and breaks above $118,700 before climbing toward the $160K mark.
2. A deeper correction to around $108,000 occurs, followed by a strong recovery and bullish breakout.

In both scenarios, Bitcoin’s strength could eventually benefit altcoins — but only after the two key signals (Ethereum breaking $4K and USDT dominance falling) are confirmed.

Final Thoughts

Timing the next altcoin breakout isn’t just about watching Bitcoin. Traders need to closely monitor Ethereum’s breakout potential and USDT dominance for a signal that capital is rotating into higher-risk assets. If Ethereum convincingly clears $4,000 and USDT dominance trends toward 3.21%, the door may open for a full-blown altseason.

Until then, caution remains warranted. Bitcoin dominance still holds sway, and any major rise could temporarily pressure altcoins. But for those who’ve been sidelined or waiting to scale in, these signals may offer the clearest guidance on when to move.

Read Also: TOP Altcoins to Buy for Gain 10X–100X on This Bull Run

FAQs

What signals indicate an upcoming altcoin rally?

Two key signals: Ethereum breaking above $4,000 and USDT dominance dropping to 3.21%. Both suggest investor appetite for riskier altcoin positions.

Why is Ethereum’s $4,000 level important?

ETH has formed a multi-year symmetrical triangle with strong resistance at $4,000. A breakout would likely lead the altcoin market upward.

What does a drop in USDT dominance mean?

It indicates that traders are moving funds out of stablecoins and into altcoins or other volatile assets, a sign of risk-on behavior.

Could Bitcoin dominance affect altcoins negatively?

Yes. A rise in BTC.D toward 64.6%–64.8% could lead to short-term declines in altcoin prices by 10–20%.

What is the price target for Bitcoin?

PlanD projects Bitcoin could reach $160,000 during this cycle, depending on its performance around $113,000 or $108,000 support levels.